PHDCCI for boosting share of hydel power

TNNFeb 21, 2004, 02.41am IST

NEW DELHI: PHDCCI has called for a time-bound action plan to increase the share of hydro power projects in the country. Criticising the current policy of calculation of tariff of hydro projects on cost plus formula basis, the chamber says that it offers no motivation for developers to reduce tariff through efficient development of projects.

According to PHDCCI, a flat rate route offers strong motivation for efficient execution of projects with low tariffs. It has also demanded that hydro power should be given all incentives currently available to mega thermal projects. Expressing concern at the slow progress of hydro power projects in the country, it has suggested that Central and State Governments must carry out the feasibility of all hydro projects before offering them to private developers. The chambers says that large projects would inevitably have to be taken up by the Government.

SEBs/Power corporations buying power from hydro projects must negotiate tariff at the bus bar level. Wheeling of power from bus bar to the consuming states should be the responsibility of the buying utility. Since financing on easy terms is the key factor, rigid conditions imposed by FIs are inhibiting the development of hydro projects.

For evacuation of power, particularly from projects based in far flung areas, the chamber has asked the Government provide a network of transmission lines.